- Gold Price portrays corrective bounce on the way to posting three-week downtrend.
- Cautious mood amid looming US debt ceiling expiry, key US data allow US Dollar to retreat, underpin XAU/USD’s bounce.
- Upbeat US statistics, hawkish Fed concerns join hopes of no US default, despite all drama, to keep Gold bears hopeful.
Gold Price (XAU/USD) pares weekly losses at the lowest levels in two months as markets await the key US data, as well as the debt ceiling deal. The precious metal’s latest rebound could be linked to the US Dollar’s retreat from a multi-day top as the latest headlines suggest that the policymakers still have sizeable differences to cut to avoid the US default. Even so, upwardly revised US Real GDP and activity data underpin hawkish hopes surrounding the Federal Reserve, despite mixed comments from the Officials of late, which in turn exert downside pressure on the XAU/USD.
Moving on, US debt ceiling negotiations will be crucial to gauge the market moves as the early June deadline looms. Further, the US Durable Goods Orders for April and the Core Personal Consumption Expenditure (PCE) Price Index for the said month, known as the Fed’s preferred inflation gauge, should also be watched carefully for clear directions.
Also read: Gold Price Forecast: XAU/USD eyes US PCE inflation and a weekly close below 100 DMA
Gold Price: Key levels to watch
As per the out Technical Confluence Indicator, the Gold Price grinds within a short-term trading range around the multi-day low.
That said, the $1,943 appears the key support for the XAU/USD bear’s re-entry as it comprises a slew of technical indicators namely the Pivot Point one-month S1, previous high on four-hour (4H) and the middle band of the Bollinger on the 15-minute timeframe.
Following that, the lower band of the Bollinger on the one-day and four-hour timeframes, around $1,938, can act as the last defense of the Gold buyers.
It should be noted that a convergence of the Fibonacci 23.6% on one-day and Pivot Point one-week S1 restricts the immediate downside of the XAU/USD near $1,945.
Meanwhile, the quote’s recovery moves need validation from the previous monthly low of around $1,951.
In a case where the Gold Price remains firmer past $1,951, the odds of witnessing a run-up towards the $1,967 hurdle encompassing the 100-HMA, 5-DMA and previous daily high can’t be ruled out.
Given the XAU/USD run-up past $1,967, the Fibonacci 23.6% on one-week around $1,971 can try to defend the castle with one hand.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD battles 1.0700 after mixed Eurozone data
EUR/USD has come under renewed selling pressure, battling 1.0700 after mixed Eurozone Retail Sales data for April. The pair remains undermined by the cautious market mood, disappointing German Factory Orders and a broad US Dollar rebound.
GBP/USD turns south toward 1.2400 as US Dollar recovers
GBP/USD is heading south toward 1.2400, meeting fresh supply in the European session. The US Dollar is seeing renewed safe-haven buying amid a risk-off market profile, acting as a headwind to the pair.
Gold oscillates around $1,960 amid mixed responses to Fed’s June policy
Gold price is auctioning inside the woods around $1,960.00 in the early London session. The precious metal is displaying back-and-forth action as the investing community is divided about the interest rate decision by the Fed to be taken in June’s monetary policy meeting.
Is the metaverse hype back in action?
Although there are no major macroeconomic events this week, investors can expect massive volatility on a daily basis. The reasoning behind this outlook is that Apple will be conducting the 2023 Apple Worldwide Developers Conference (WWDC) on June 5.
Markets are likely to focus on ECB commentary
This is a very quiet week in terms of data and hence markets are likely to focus on last minute central bank commentary. The FOMC blackout period kicked off already on Sunday, but today we have a bunch of ECB speakers on the wires.